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Dollar Tree, Inc. Common Size Income Statement 12 Months Ended 12 Months Ended Percentages Percentages Percentages Jan. 28, 2023 Jan. 29, 2022 Jan. 30, 2021
Dollar Tree, Inc. Common Size Income Statement | 12 Months Ended | 12 Months Ended | Percentages | Percentages | Percentages | ||||||||||||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | ||||||||||||
Total revenue | 28,331.7 | 26,321.2 | 25,509.3 | ||||||||||||||
Cost of sales | 19,396.3 | 18,583.9 | 17,721 | ||||||||||||||
Selling, general and administrative expenses | 6,699.1 | 5,925.9 | 5,900.4 | ||||||||||||||
Operating income | 2,236.3 | 1,811.4 | 1,887.9 | ||||||||||||||
Interest expense, net | 125.3 | 178.9 | 147.3 | ||||||||||||||
Other expense, net | 0.4 | 0.3 | 0.8 | ||||||||||||||
Income before income taxes | 2,110.6 | 1,632.2 | 1,739.8 | ||||||||||||||
Provision for income taxes | 495.2 | 304.3 | 397.9 | ||||||||||||||
Net income | $ 1,615.4 | $ 1,327.9 | $ 1,341.9 | ||||||||||||||
a. Review the vertical analysis and provide the two largest expenses for the current year. Explain the trend over the three years for these two expenses and discuss how these costs affects net earnings. | |||||||||||||||||
b. Discuss the fluctuations in interest expense. What are reasons that could cause changes in interest expense? You need to provide specific causes for the applicable company that relates specifically to the interest expense. | |||||||||||||||||
c. Discuss the fluctuations in income tax expense. What are reasons that could cause changes in income tax expense? You need to provide specific causes for the applicable company that relates specifically to the income tax expense. | |||||||||||||||||
d. Was the company more or less profitable when compared to the prior year? Using the specific income statement ratios or amounts, explain what caused the change in income from the prior year. |
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